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3. Which of the following is not correct? A. The cost of equity is the return that equity investors require on their equity investment in

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3. Which of the following is not correct? A. The cost of equity is the return that equity investors require on their equity investment in the firm. B. The cost of equity can be found by either the dividend growth approach or the SML approach. C. The cost of debt is the return that lenders require on the firm's equity capital. D. The cost of preferred stock is the return that preferred stock holders require on the firm's debt capital

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